WLFI-linked AI Financial warns it may not survive next 12 months after losses balloon to $271 million
AI Financial Corporation, a Nasdaq-listed fintech firm holding World Liberty Financial (WLFI) tokens on its balance sheet, flagged substantial doubt about its ability to continue as a going concern over the next 12 months after posting a $271 million net loss in the first quarter of 2026.
The company also reported a $5.5 million working capital deficit, with current liabilities of $39.1 million exceeding current assets of $32.2 million. Cash on hand rose to $10.5 million from over $6 million after a $15 million drawdown in January 2026 under a loan agreement with WLFI at a 4.5% annual rate.
The massive quarterly loss was largely driven by an unrealized write-down on the company’s 7.3 billion WLFI tokens, which were carried at roughly $703 million on its balance sheet.
Due to strict contractual lock-up provisions, AI Financial cannot sell these tokens. Management flagged the token stash as its primary lifeline while simultaneously warning there is no guarantee the assets can be monetized at current values or at all.
The company, formerly known as ALT5 Sigma Corporation, launched a WLFI treasury program in August 2025 and bought the tokens at an average price of around $0.2 per token. As the token plunged sharply, it suffered around $348 million in unrealized losses on its holdings as of March 28.
By the end of March, WLFI was trading at around $0.097. Since then, the token has declined about 37% and now sits near $0.06, per CoinGecko. The drop implies that the company’s unrealized losses would now be greater than what was reported.
The Las Vegas-based company, which trades under the ticker AIFC, reported total assets of almost $960 million as of quarter’s end, down from $1.2 billion at the close of fiscal 2025.
Operating metrics and fintech revenue
Excluding the crypto write-down, the company’s fintech segment generated $4.7 million in revenue during the quarter, a slight decline from $4.8 million in the year-ago period. Gross profit, however, improved to $3.6 million from $1.9 million a year earlier.
Selling, general and administrative expenses climbed to $6.3 million from $3.9 million, largely because of higher professional fees. The operating loss widened to $2.7 million from $1.9 million.
On a per-share basis, the loss came to $2.14, compared with a loss of $0.15 in the prior-year quarter. Weighted average shares outstanding surged to 126.8 million from 15.6 million because of the massive equity issuances tied to the August 2025 capital raise.
